How downstate casino licenses pave the way for New York online casinos

Over three years after Gov. Kathy Hochul included three downstate casino licenses in the New York state budget, we have finally seen some headway as to which brands would arrive in the New York City area as soon as mid-2026.

Once the final three bids are selected by state officials, there's little doubt that lawmakers will make yet another effort toward legalizing online casinos in New York – despite how tall a task it would be to push legislation across the finish line.

Even so, with the downstate casino licensing process winding down, we can shift our attention forward to what the New York online casino landscape may look like and what kinds of online casino bonuses and online casino games we may see.

When Hochul first approved the release of three downstate casino licenses in 2022, around a dozen parties expressed interest in bidding. Now, the list stands at three, with Resorts World New York, an existing propery that operates as s racino, expected to be a front-runner for two licenses.

Elsewhere, Bally's Bronx received approval on its $4 billion project in Ferry Point, while billionaire Steve Cohen's plan to build Metropolitan Park near Citi Field in Queens also received a thumbs-up from its community advisory committee.

Three licenses are up for grabs, with the New York State Gaming Commission (NYSGC) expected to name the recipients by December.

Almost certainly, Sen. Joseph Addabbo would waste little time getting the ball rolling for legal online casinos in New York, likely introducing a proposal within a few weeks of the downstate casino licenses being issued. But how does this all tie together?

Seemingly each year since New York launched legal online sports betting, Addabbo has remained at the forefront of further iGaming expansion, namely with regulated online casinos.

His most recent effort – S2614, which did not make it out of committee – tasked the NYSGC with granting online casino licenses to established land-based casinos, video lottery terminals, licensed online sportsbooks and federally recognized tribes that have gaming compacts with the state.

All told, that leaves just under 20 potential licenses for online casino gaming in New York. It also means that, if everything goes well, you could see some of the biggest iGaming brands operating in the Empire State, including:

While two of the approved downstate proposals (Resorts World, Bally's) already have stakes in the New York ground for a potential online casino license, the third – Metropolitan Park – could open the door for Hard Rock, which is lined up as Cohen's gaming partner.

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Addabbo has never been one to back away from what he believes is best for the Empire State, especially when it comes to legalizing online casinos in New York. The state's budget has continued to grow with each year his proposals have fallen by the wayside.

According to an August report from State Comptroller Thomas P. DiNapoli, New York's cumulative three-year budget gap of $34.3 billion through fiscal year 2029 reflects a $7 billion increase from Hochul's most recent executive budget in January. What's more, that budget gap is one not seen since the Great Recession.

Each year, Addabbo has pointed to legal online casinos at least contributing somewhat toward helping the state right the fiscal ship. His 2024 proposal estimated that New York would pocket around $150 million in licensing fees alone while also noting that nearby New Jersey and Pennsylvania combined for some $3.5 billion in revenue in 2023.

Over the past few years, though, Addabbo has not been able to gain much ground in iGaming talks, as many believed state officials and regulators focused their sole attention on downstate casino licensing. That distraction appears to be over soon. But another obstacle awaits.

The problem, however, is not just a difference of political opinion when it comes to legalizing online casinos. In fact, Hochul has shown her willingness to expand legal gaming in New York, as shown by the downstate casino licenses. 

Rather, the New York Hotel and Gaming Trades Council (HTC) stands as the biggest hurdle. If ever a year was closest to legalizing iGaming, 2024 still fell short thanks to the HTC, which condemned Addabbo's efforts and called his proposal "a job killer."

Online casinos are a threat to land-based casinos and resorts, the theory went. Unfortunately for Addabbo, the HTC carries enough clout in New York that if the labor union doesn't want something to happen, it will get its way in the end.

This is why Addabbo has attempted to build a bridge between the two sides. Meet at the table, he believes, and they can certainly come to an agreement to make iGaming happen.

That itself is a tall task. But, with the three downstate casino licenses potentially issued by the end of the year, it's one Addabbo can attempt to achieve.

Grant Lucas